Decentralisation and Local Government

Decentralisation is a broad term, which can be used to refer to different forms of government. Essentially, decentralisation is about the transfer of power from central government to lower levels of government. This can include responsibility for planning and management of government functions including raising and allocating resources.

There are three main types of decentralisation:

1) Administrative decentralisation refers to the transferring of authority, resources and responsibilities from central government to field offices and agencies. These lower levels of government remain wholly accountable to the delegating body, although there may be some scope for local citizen participation.

Deconcentration is the main form of administrative decentralisation and refers to the transfer of power to central government officials who are dispersed and relocated across the country, for example Provincial Governors or District Officers, and local offices of central ministries. Hierarchical accountability is maintained between the local units and the central government. It is often seen as the first step for countries wanting to pursue decentralisation.

Delegation is another form of administrative decentralisation which refers to the transfer of authority and responsibility from central government to specialised agencies at the local level, such as a hospital board or local project implementation unit. These units are mainly still accountable to the delegating central ministry.

2) Political decentralisation is the transfer of power to lower levels of government which are elected by local citizens (in various ways) and which have some degree of local autonomy. Such local governments are therefore downwardly accountable to citizens rather than to central government. It is sometimes referred to as democratic decentralisation. Political decentralisation requires a constitutional, legal and regulatory framework to ensure accountability and transparency.

Devolution is the main form of political decentralisation and refers to the transfer of substantial responsibility, decision-making, resource and revenue generation to a local government that has a significant degree of local autonomy. These devolved units are normally independent legal entities and fully elected. It is generally seen as the most comprehensive form of decentralisation.

3) Fiscal decentralisation is not really a separate form of decentralisation – instead it is more accurately described as the financing mechanisms that underpin all forms of decentralisation. It refers to the transfer of funds, and sometimes revenue-raising powers, from central government to lower levels of government. Resource allocations are often negotiated between the central and local units based on various factors, for example interregional equity, availability of resources and local financial management capacity. Adequate financial resources are necessary for local government to fulfil its responsibilities, and so effective fiscal decentralisation is vital for the success of any form of decentralisation.

In any country there are likely to be both deconcentrated and devolved systems operating in parallel. For example, centrally appointed district officers and elected local governments may both work in the same locality. There may also be agencies with delegated powers, such as local offices of national social action programmes. These parallel structures can and often do lead to conflicts and uncertain lines of accountability. The situation becomes even more complex in countries that have multiple tiers of sub-national government.

‍